Ready for the big one…
This time, I am presenting a monthly chart, which I think it will be apt at this moment. Probably this analysis could be named as Market Next Month... !!.
I have marked a “Flag”; almost matured for action, on the chart. NIFTY could either breakout from this pattern or go for a breakdown. Looking at different indicators ( Not shown ). You can see negative divergences. This favors breakdown. Additionally, the Flag is upward slopping, which too favors a breakdown.
It is not good to conclude before confirmation. Hence I am giving you both chances.
One ting is sure. A “Big Move” is close by.
Looking back; notice the strength of the breakout bar. That was over 18% in a single month.
A monthly breakout or breakdown will be of similar strength. So, if it is breakdown, you can expect one of similar nature.
So why don’t we be extremely cautious
